action plan · the debt · Uncategorized

How Much Debt Am I Actually In?

Debt comes in many forms. Some people have a lot of debt, some only a little. Many have interest accrued debt, other had a family emergency and now owe back bills, and bills that have been shut off.

Whatever type of debt you have, you know you feel like it will never go away. It’s a crippling feeling. The idea that you owe money but don’t know where to find the money to pay it off.

I left my parents home when I was 18 and pregnant. I had never been an adult, and I trusted my ex with all our bills….oh all the bills were in my name! It took about 2 months before shut off notices started coming in.

My parents bailed us out more than I care to admit. I have no clue how much I actually owe them but they paid bills, bought groceries, and even most of the toys and clothes that my boys wore the first few years of their life. I’m just gonna do a nice round number of $5,000 I owe them alone.

If you asked my parents what I owe them, they’d say nothing. That’s not the point though. In order to really get out of debt, you must own up to every last penny you owe. So here is the break down list from biggest to smallest.

My Uncle $100

TSI $141

Direct TV $250

Verizon $279

Diversified $986

Fed loan 2 $1,831

Convergent $1,996

Fed loan 3 $3,545

Fed loan 1 $3,729

My parents $5,000

ATG $5,079

Total: $22,926

Now other than my student loans, I have no debt that accrues interest. So although I will be paying my debt off through the Dave Ramsey process, I will be paying a slight percent higher towards my fed loans.

My thought is this. Pay off the easy low-priced ones in full. (My uncle, tsi, and direct TV) that will take two months. One bill per pay. From there I will not make payment arrangements with any of them. I will pay my normal bills and groceries and whatever is left will be divided between all of them. I’ll also double my fed loan portion.

Example: $500 left over at the end of the month.

Verizon: 1

Diversified: 1

Fed loan 2: 2

And so on which means $500 will be divided by 11 accounts. $45 will go to each account and $90 will go to each fed loan. The extra $5 will help with payment charges.

Every pay will differ in the amount I can pay. I do have kids with extra curricular activities and emergency situations. The key for me is just picking away one day at a time. To see the bills amount owed going down, and using that as momentum to save more and spend less.

Once I reach the half way mark, I’ll be getting help with my actual credit score. I’m thinking Lexington law because I have used them in the past, but nothing is set in stone just yet.

Right now Creditkarma.com has my credit score at 452. Yea its bad!

 

Have any good tips for paying off debt? Have you gone through the Dave Ramsey classes? make sure to tell me your thoughts in the comments below!

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